Professional Documents
Culture Documents
CSEC Economics PDF
CSEC Economics PDF
ECONOMICS
SYLLABUS
Effective for examinations from May/June 2007
CXC 34/G/SYLL 05
Published by the Caribbean Examinations Council
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form, or by any means electronic, photocopying, recording or otherwise without prior
permission of the author or publisher.
The Pro-Registrar
Caribbean Examinations Council
Caenwood Centre
37 Arnold Road, Kingston 5, Jamaica, W.I.
CXC 34/G/SYLL 05
Content
RATIONALE ............................................................................................................................................ 1
AIMS ......................................................................................................................................................... 1
GENERAL OBJECTIVES........................................................................................................................ 2
CXC 34/G/SYLL 05 1
REGULATIONS FOR PRIVATE CANDIDATES ......................................................................... 32
The CSEC Economics syllabus introduces students to relevant economic concepts and principles that will
provide the foundation necessary for a proper understanding of how economies work, especially the
economies of small states like those in the Caribbean. It also gives students the critical knowledge and skills
to communicate ideas using the language and tools of the discipline of Economics, as well as provides a
useful foundation not only for further study in Economics but also for study in other Social Science
subjects, including History, Politics, Business and International Relations.
This syllabus will contribute to the development of the Ideal Caribbean Person as articulated by the CARICOM Heads
of Government, in areas including but not limited to the following:
is aware of the importance of living in harmony with the environment: has a strong appreciation of community
cohesion, and moral issues including responsibility for and accountability to self and community;
demonstrates multiple literacies, independent and critical thinking, questions the beliefs and practices of past and
present and brings this to bear on the innovative application of science and technology to problem solving;
demonstrates a positive work attitude;
values and displays the creative imagination in its various manifestations and nurtures its development in the
economic and entrepreneurial spheres in all other areas of life.
Also, in keeping with the UNESCO Pillars of learning, on completion of this course of study, students will learn to
know, learn to do, learn to be, and learn to live together having been exposed to the values implicit within human rights,
and democratic principles.
In summary, the syllabus seeks to equip students with the basic tools necessary for an understanding and
interpretation of economic phenomena experienced by Caribbean people and for communicating,
intelligently and effectively, on economic issues in the region and the wider international community.
AIMS
The syllabus aims to:
2. equip students with the tools needed for economic analysis, thus enabling sound, informed
decisions as consumers of goods and services;
CXC 34/G/SYLL 05 1
3. provide students with the foundation that will enhance their study in other disciplines that include
concepts and principles of Economics and make use of the analytic approaches of Economics;
GENERAL OBJECTIVES
On completion of this syllabus, students should:
2. develop the skills to assess economic issues that would affect their lives as workers, consumers and
citizens;
3. develop the competence to contribute to discussions on current economic issues and decisions that
should be made to shape and strengthen local, national and regional institutions;
4. develop the ability to analyse, critically, economic decisions made by policy makers;
5. demonstrate an awareness of the fact that economists hold differing views on some economic
issues.
(b) define and explain economic concepts, principles, theories and procedures;
(a) select, organise and interpret economic data presented in a variety of forms;
(b) organise and present, logically and effectively, economic ideas and arguments using verbal,
graphical and numerical forms of communication.
Application
(b) apply economic concepts, principles and theories to solve economic problems in various situations.
Paper 02 This paper will be divided into two parts. Questions in each part will test all three
(2 hours) profile dimensions. Part I will consist of four (4) compulsory structured questions.
Part II will consist of four (4) essay questions of which candidates will be required to
answer two (2) questions.
CXC 34/G/SYLL 05 3
School-Based Assessment (SBA)
Paper 03/1 This component will focus on the assessment of the Interpretation and Analysis and
Application profile dimensions by means of a project or special assignment drawn
from relevant objectives in the syllabus. (See pages 26 - 30).
Paper 03/2 This paper is an alternative to the SBA for private candidates (see details on pages 31 -
32).
This paper will focus on the assessment of the Interpretation and Analysis, and
Application profile dimensions by means of a written examination with questions based
on a case study. The examination will consist of five structured questions requiring
responses which may vary in length and detail from one or two sentences to one or
more paragraphs. This paper will be weighted in the same way as the Paper 03/1
for school candidates.
PAPERS
PROFILES Paper 01 Paper 02 Paper 03 TOTAL (%)
(SBA)
Knowledge and
Comprehension (P1) 16 34 10 60 (30)
100
Total 60 40 200 100
CXC 34/G/SYLL 05 4
SUGGESTED TEACHING AND LEARNING ACTIVITIES
Teachers are encouraged to engage students in activities such as those listed below as they seek to achieve
the objectives of the syllabus.
2. Discussions on surveys of living conditions reports and UNDP reports on Caribbean territories;
CXC 34/G/SYLL 05 5
SECTION 1: THE NATURE OF ECONOMICS
SPECIFIC OBJECTIVES
6. illustrate opportunity cost and efficiency, using the production possibility frontier;
CONTENT
(c) the behaviour, interactions and welfare of those involved in the process;
2. An economy as a mechanism:
CXC 34/G/SYLL 05 6
THE NATURE OF ECONOMICS (contd)
CXC 34/G/SYLL 05 7
SECTION 2: PRODUCTION, ECONOMIC RESOURCES AND
RESOURCE ALLOCATION
SPECIFIC OBJECTIVES
1. define production;
CXC 34/G/SYLL 05 8
PRODUCTION, ECONOMIC RESOURCES AND RESOURCE ALLOCATION (contd)
CONTENT
1. Definition of production.
3. Factors of production: resources, both human and non-human, required to produce goods.
(a) land;
(b) labour;
(c) capital;
(a) rent;
(c) interest;
(d) profit.
(a) Land
(i) definition;
(ii) characteristics;
(iii) types;
(iv) importance;
(v) productivity.
CXC 34/G/SYLL 05 9
PRODUCTION, ECONOMIC RESOURCES AND RESOURCE ALLOCATION (contd)
(b) Labour
(i) definition;
(ii) characteristics;
(iii) functions;
(vi) productivity;
(vii) efficiency;
(viii) supply.
(c) Capital
(i) definition;
(ii) characteristics;
(iii) types;
(iv) accumulation;
(i) definition;
(ii) importance;
(iii) functions.
CXC 34/G/SYLL 05 10
PRODUCTION, ECONOMIC RESOURCES AND RESOURCE ALLOCATION (contd)
10. Resource allocation: what to produce; how much to produce and for whom to produce.
12. Characteristics of each economic system in relation to ownership of the factors of production, role
of government and role of the private sector; how each economic system allocates resources.
13. Merits and demerits of each economic system in terms of its efficiency in allocating scarce resources
and in providing goods and services to each sector of the population.
CXC 34/G/SYLL 05 11
SECTION 3: MARKETS AND PRICES
SPECIFIC OBJECTIVES
3. describe the relationship between price and demand, and price and supply;
5. illustrate the concepts of demand and supply by using demand and supply curves;
7. illustrate how changes to the determinants affect demand and supply curves;
CXC 34/G/SYLL 05 12
MARKETS AND PRICES (contd)
CONTENT
1. Concept of a market.
3. The relationship between price and quantity demanded, and price and quantity supplied (the four
laws of demand and supply).
6. Demand and supply conditions: factors determining the environment for price movements.
7. Diagrammatic representations and analyses of how changes to the determinants affect demand and
supply curves.
8. Market equilibrium: agreement between consumer and supplier on the price and quantity of goods
demanded and offered.
14. Illustration, by graphs and tables, of changes in conditions of demand and supply.
CXC 34/G/SYLL 05 13
MARKETS AND PRICES (contd)
16. Price elasticity of supply: what happens to quantity supplied following a change in price.
(b) monopoly;
(c) oligopoly;
(a) retrenchment;
(b) unemployment;
(c) economic depression;
(d) rise in levels of poverty;
(e) decline in provisions for societal welfare.
CXC 34/G/SYLL 05 14
SECTION 4: THE FINANCIAL SECTOR
SPECIFIC OBJECTIVES
10. describe the role of the Central Bank and other financial institutions;
CONTENT
1. The Financial Sector: The complex mix or network of markets, households, businesses,
governments, laws and institutions interacting with one another.
2. The role of the Financial Sector in mobilizing and making loanable funds available from savers to
spenders for consumption and investment purposes.
4. Economic activities that are not officially regulated and which take place outside the formal norms
of business transactions.
5. Money as any item considered acceptable to be used as payment for goods and services.
CXC 34/G/SYLL 05 15
THE FINANCIAL SECTOR (contd)
9. Money supply: the total stock of money in the economy at any moment.
10. Roles of the Central Bank and the following financial institutions:
(j) Informal credit institutions (Sou Sou, Box, Partner, Sindicatos, Meeting Turns).
CXC 34/G/SYLL 05 16
SECTION 5: ECONOMIC MANAGEMENT: POLICIES AND
GOALS
SPECIFIC OBJECTIVES
2. explain the meaning of terms and concepts associated with economic policies and goals;
5. distinguish between Gross Domestic Product (GDP) and Gross National Product (GNP);
9. state the main causes and consequences of inflation and recession on an economy;
CONTENT
1. Role of government, for example, in taxation and expenditure, and transfer policies.
CXC 34/G/SYLL 05 17
ECONOMIC MANAGEMENT: POLICIES AND GOALS (contd)
(m) GDP;
(n) GNP;
(o) employment;
(p) unemployment;
(q) inflation;
(r) deflation;
(s) savings;
(t) investment.
3. Flows of goods and services and factors of production between firms and households.
4. Illustration of a basic flow diagram consisting of households, firms, government and financial
institutions.
5. GDP: a measure of national output; GNP: a measure of the increase or decrease in the standard of
living; Calculation of GDP and GNP.
CXC 34/G/SYLL 05 18
ECONOMIC MANAGEMENT: POLICIES AND GOALS (contd)
(a) structural;
(b) cyclical;
(c) frictional;
(d) seasonal;
(e) real-wage.
CXC 34/G/SYLL 05 19
SECTION 6: INTERNATIONAL TRADE
SPECIFIC OBJECTIVES
1. explain the meaning of terms and concepts associated with international trade;
3. describe the primary factors that influence the level of international trade;
12. describe the entries that would appear in the balance of payments account;
13. distinguish between balance of payments surpluses and balance of payments deficits;
14. describe the factors that give rise to balance of payments surpluses and deficits;
15. state the possible consequences of balance of payments surpluses and deficits;
16. describe the possible remedies for balance of payments surpluses and deficits.
CXC 34/G/SYLL 05 20
SECTION 6: INTERNATIONAL TRADE (contd)
CONTENT
(f) tariff;
2. The concept of comparative advantage and gains from trade. International trade as a win-win
situation.
4. Terms of trade.
CXC 34/G/SYLL 05 21
INTERNATIONAL TRADE (contd)
9. Balance of payments as a balance sheet indicating all the international transactions with the rest of
the world.
10. Balance of Trade as the difference between the values of exports and imports of visible and
invisible.
11. Current Account, Capital Account and the Official Financing Account.
13. Surplus as excess of receipts over payments; deficit as excess of expenditure over receipts.
CXC 34/G/SYLL 05 22
SECTION 7: CARIBBEAN ECONOMIES IN A GLOBAL
ENVIRONMENT
SPECIFIC OBJECTIVES
3. explain the meaning of terms and concepts associated with Caribbean economies;
5. identify the benefits and costs derived from CARICOMs participation in preferential trade
arrangements;
10. list the benefits to be derived from the Caribbean Single Market and Economy (CSME);
11. state the effects of globalization and trade liberalization on territories, firms, consumers and
governments in the Caribbean;
12. identify development strategies that Caribbean governments may use in a globalised economic
environment;
CXC 34/G/SYLL 05 23
CARIBBEAN ECONOMIES IN A GLOBAL ENVIRONMENT (cont)
CONTENT
(d) protectionism;
(e) laissez-faire;
(i) globalization;
CXC 34/G/SYLL 05 24
CARIBBEAN ECONOMIES IN A GLOBAL ENVIRONMENT (cont)
4. Definition and explanation of preferential tariffs including those offered by the European Union
(EU).
5. Benefits and costs of preferential tariff arrangements in light of discussions within the World Trade
Organisation (WTO).
6. Trade liberalization in the context of the termination of all preferential tariff arrangements
worldwide.
10. Possible social and economic benefits to be derived from the free movement of capital, goods and
labour within CARICOM.
11. Effects of globalization and trade liberalization on firms, consumers and the sovereignty of
territories.
CXC 34/G/SYLL 05 25
GUIDELINES TO TEACHERS FOR THE CONDUCT OF
SCHOOL-BASED ASSESSMENT
School-Based Assessment is an integral part of student assessment in the course covered by this syllabus. It
is intended to assist students in acquiring certain knowledge, skills and attitudes that are critical to the
subject. The activities for the School-Based Assessment are linked to the topics and should form part of the
learning activities to enable the student to achieve the objectives of the syllabus.
During the course of study of the subject, students obtain marks for the competences they develop and
demonstrate in undertaking their School-Based Assessment assignment. These marks contribute to the final
marks and grades that are awarded to students for their performance in the examination.
The guidelines provided in this syllabus for selecting appropriate tasks are intended to assist teachers and
students in selecting assignments that are valid for the purpose of School-Based Assessment. These
guidelines are also intended to assist teachers in awarding marks according to the degree of achievement in
the School-Based Assessment component of the course. In order to ensure that the scores awarded by
teachers are not out of line with the CXC standards, the Council undertakes the moderation of a sample of
School-Based Assessment assignments marked by each teacher.
School-Based Assessment provides an opportunity to individualise a part of the curriculum to meet the
needs of students. It facilitates feedback to the students at various stages of the experience. This helps to
build the self-confidence of the students as they proceed with their studies. School-Based Assessment further
facilitates the development of essential research skills that allow the student to function more effectively in his
or her chosen vocation. School-Based Assessment, therefore, makes a significant and unique contribution to
the development of relevant skills of the students. It also provides an instrument for testing them and
rewarding them for their achievements.
The School-Based Assessment component of the Economics Syllabus is a single guided research project for
school candidates. The project should be on any topic drawn from relevant objectives of the syllabus and is
intended to develop in the candidate an interest in self-directed investigation including the collection of
data in a scientific manner. The execution of the SBA project should lead to a sense of accomplishment
while facilitating the development of the basic skills of economic research. Teachers should regard School-
Based Assessment as an integral part of teaching the syllabus.
i. provide the candidate with an opportunity to investigate an area of special interest within the
prescribed syllabus;
ii. develop the candidates ability to conduct an enquiry and present the findings;
iii. provide an opportunity for the teacher to be involved in the evaluation process.
CXC 34/G/SYLL 05 26
SBA REQUIREMENTS
Every candidate who enters for the CSEC Economics examination must submit a report on a project.
Students may work individually or in groups to investigate a specific problem. However, each candidate
must produce a complete report. No two reports from the same group should be identical. The report
should not exceed1,000 words and should include appropriate charts, graphs, tables and pictures.
The teacher must approve the problem to be investigated, guide the student during the process of
investigation, mark the completed work according to the guidelines provided by CXC, and submit the marks
for the project to reach CXC by April 30 in the year of the examination. Submission should be made via the SBA
Data Capture Module of the Online Registration System (ORS) found on the Councils website www.cxc.org
The project should be based on research activities and should make use of qualitative or quantitative data or
both to research economic issues and problems. Students doing more than one subject in the Business cognate group
may submit one SBA under a theme which covers this group.
PROJECT REPORTS
A students report should be submitted electronically or presented in a soft folder bearing the students number,
name of subject and the date submitted. The project document should comprise:
(i) title;
Students and teachers must ensure that the report contains the required components and addresses all the
profile dimensions identified on Page 3 of the syllabus.
Students are expected to present the report using qualitative or quantitative data or both, including graphs,
charts and tables. Students will be awarded marks for clarity of expression and the correct use of grammar.
Students should:
CXC 34/G/SYLL 05 27
(vi) interpret data in terms of the purpose of the investigation;
(viii) make recommendations based on findings and suggest measures for their implementation.
The sources of data listed below can be used by candidates in their research activities.
(ii) Statistical reports such as national income statistics, balance of payments statistics, survey of living
conditions, household budgetary surveys, annual economic reports of Central Banks, Ministries of
Finance and Planning Units, questionnaires and interviews.
(i) inform students of appropriate topics in the syllabus that are suitable for research;
(iii) advise students about the final date for completion and submission of the project;
(iv) ensure that themes relevant to the project are adequately covered;
(v) advise students of the nature of the task, the scope and depth required to fulfill it and the
availability of resource materials;
(vi) monitor students progress by advising them of the quality of their work and recommending ways
to improve the quality of the project;
CXC 34/G/SYLL 05 28
(viii) keep records of students marks and submit these, together with samples of their work, as requested
by CXC; via the SBA Data Capture Module of the Online Registration System (ORS) found on the Councils
website www.cxc.org
(ix) ensure that the guidelines are closely followed and the criteria are adequately met.
NB. It is the responsibility of the teachers to ensure that the project is the students work as
plagiarism and other forms of cheating will be penalised.
Knowledge/Comprehension - 10 marks
Interpretation/Analysis - 20 marks
Application - 10 marks
N.B. The following tasks are to be done under the supervision of the teacher.
P1 P3
P2
CRITERIA (Knowledge/ (Application)
(Interpretation/
Comprehension)
Analysis)
CXC 34/G/SYLL 05 29
P1 P3
P2
CRITERIA (Knowledge/ (Application)
(Interpretation/
Comprehension)
Analysis)
CXC 34/G/SYLL 05 30
GUIDELINES FOR THE ALTERNATIVE TO SCHOOL-BASED
ASSESSMENT
The Alternative to the School-Based Assessment in CSEC Economics (Paper 03/2), takes the form of a written
examination in lieu of internal assessment for school candidates. This paper will be drawn from any area of the
syllabus that lends itself to the Knowledge and Comprehension, Interpretation and Analysis, and Application
of qualitative and/or quantitative or economic data. Paper 03/2 will be weighted in the same way as the Paper
03/1 (SBA) for school candidates, as shown in the table below.
10 20 10 40 20
Paper 03/2 consists of five structured questions requiring written responses which may vary in length and detail
from one to two sentences to one or more paragraphs. Questions will be based on research activities and will
test the candidates ability to interpret qualitative and/or quantitative economic issues and problems presented
in the form of case studies. Candidates are advised to familiarise themselves with the research activities listed
below, in order to prepare adequately for Paper 03/2. Please note that candidates taking Paper 03/2 are NOT
required to submit a project.
In order to enhance their performance on Paper 03/2, candidates may also wish to:
ii. choose appropriate sources of data to investigate the problem or issue; these may include the
business section of local newspapers, statistical reports such as national income statistics, balance of
payments statistics, survey of living conditions, household budgetary surveys, annual economic
reports of Central Banks, Ministries of Finance and Planning Units, annual reports of firms in the
region, the economic information available on the internet, budget speeches of Ministers of
Finance or reviews of estimates of income and expenditure from Ministries of Finance;
CXC 34/G/SYLL 05 31
iii. use graphs, charts, tables, maps, diagrams as well as prose to present data;
iv. explain the data in task (iii) and state how the data addresses the problem identified in task (i);
v. write at least three statements on what was found from the investigation of the problem;
vi. suggest two or more recommendations based on findings and state how they could be
implemented.
Paper 03/1 is a single guided research project for candidates whose research must be monitored by tutors in
a recognised educational institution. The reports must be original work and must be validated by the
principal and the candidates tutors.
Paper 03/2 is a written examination designed for candidates whose research projects cannot be monitored
by tutors in a recognised educational institution and who have been assigned by the Local Registrar to write
Paper 03/2 at a designated examination centre.
ii. There is no SBA option (Paper 03/1) available for January candidates.
CXC 34/G/SYLL 05 32
iii. Resit candidates fall into two categories:
a. those resit candidates who wrote Paper 03/1 (SBA) in the year immediately preceding the
January examination. Those who obtained 50% or more are NOT required to write Paper
03/2 in January;
b. those resit candidates who wrote Paper 03/2 (Alternative to SBA) in the year immediately
preceding the examination. Those who obtained 50% or more are NOT required to re-
write Paper 03/2 in January.
iv. A candidate who qualified under iii(a) and iii(b) above who obtained 50% or more, but who wish
to try to improve on his/her grade may write Paper 03/2 in January.
v. All resit candidates who did NOT satisfy the 50% requirement (either on 03/1 or 03/2) are
required to write Paper 03/2 in January.
CXC 34/G/SYLL 05 33
GLOSSARY OF TERMS
TERMS CONCEPT
Barter The exchange of one type of good or service for another, without the use of
money.
Demand The amount of a good or service consumers wish to have and the price they
are able to pay for this amount during a specific time.
Demand Curve A graph relating demand for a good or service to its price. The price of the
good is usually shown on the vertical axis and the quantity demanded at each
level of its own price on the horizontal axis.
Demand Deposit Funds that the customer can withdraw on demand (that is, without giving
any notice of intention to withdraw) for example, current accounts and
personal chequing accounts.
Economic Flow The quantity of an economic variable, for example, money, goods or service
that is measured over a period of time, usually one year.
Economic Goals These refer to the aims or objectives that an organization or the government
wishes to achieve during the course of its activities, for example, two
objectives of a government are to achieve high employment and to reduce the
level of inflation.
Economic Growth This refers to an increase in a country's real output of goods and services over
a period of time, usually one year.
Economic Indicators These consist of a variety of types of information, obtained mainly from
statistics that policy makers use to monitor the state of the economy.
Examples of economic indicators are retail price indices, economic growth
indices, exchange rate indices and unemployment indices.
Economic Systems These are the network of organizations designed by countries to solve the
economic problem. The three main types are Free Market Economy, Planned
Economy and Mixed Economy.
Equilibrium Price This refers to market price at which the quantity demanded by consumers
and the quantity supplied by firms are equal so that there is no incentive for
firms to increase or reduce production.
Exchange Rate This is the rate at which one country's currency trades for another country's
currency on the foreign exchange market.
CXC 34/G/SYLL 05 34
TERMS CONCEPT
Factors of Production These are the economic resources which are used to enable the processes of
production to occur. The main types are land, labour, capital and
entrepreneurship.
Fiscal Policy This refers to an economic policy used by a government which involves
changing or regulating the rates of taxation and the amount of its own
spending in order to bring about changes in the economy.
Foreign exchange reserves Liquid assets held by a country's government or Central Bank for the
purpose of intervening in the foreign exchange market. These include gold
or convertible foreign currencies.
Free Rider A person or organization that benefits from a public good, but neither
provides it nor contributes to the cost of collective provision.
Functions of Money These refer to use of anything accepted as money. These uses include medium
of exchange, measure of value or unit of account, store of value and standard
of deferred payment.
Gold Standard A system for fixing exchange rates by the Central Bank or government of
each country making its currency freely convertible into gold at a fixed price.
Under this system, the par value of exchange rates is set by the amount of
each currency that can be obtained for a given quantity of gold.
Legal Tender Forms of money which a creditor is legally obliged to accept as settlement of
a debt.
Money Demand The amount of wealth every one in the economy wishes to hold in the form
of money balances.
Money Substitute A temporary medium of exchange but not a store of value, for example, a
credit card.
Money Supply The total stock of money in the economy at any moment including currency
and demand deposits.
Reserves Requirement The minimum percentage of their total assets which banks or other financial
institutions are required to hold in money balances, or in some form of
highly liquid assets.
Resources Anything, for example, skills, products and money that can contribute to
(Human/Natural/ Capital) economic activity.
Savings Deposits Also referred to as term deposits. This is an interest-bearing deposit that can
be legally withdrawn only after notice is given.
CXC 34/G/SYLL 05 35
TERMS CONCEPT
Shortage When the demand for a good or service exceeds the available supply.
Supply The amount of a good or service offered for sale by suppliers at the price they
are willing to sell at, and the amount they are willing to supply at a specific
time.
Supply Curve A curve showing the amount that firms in an industry are willing to supply at
each possible price.
Indirect tax - A tax levied on sales of a good or service; the word 'indirect'
implies the view that the real burden of such a tax does not fall on the person
or firm paying it, but can be passed on to a customer or a supplier.
Trade-offs The process of deciding whether to give up some of one good or one
objective to obtain more of another. The need to trade off goods or
objectives against one another is a sign of economic efficiency.
Unemployment Inability to obtain a job when one is willing and able to work.
CXC 34/G/SYLL 05 36
GLOSSARY OF TERMS USED IN EXAMINATIONS
TERMS MEANING LEVEL
Define; describe; enumerate; identify; Remembering and recalling of 1
label; list; match; name; record; appropriate, previously-learned Knowledge
reproduce; select; state; view. information.
CXC 34/G/SYLL 05 37